Mauritius and horn of Africa research

Common regional sectors

Digital economy, ICT and fintech

 

As internet and mobile phone penetration rises, demand for telecoms, internet, mobile-money, digital services (fintech, e-commerce) is escalating rapidly. This movement is especially important where traditional infrastructure such as roads and heavy industry, is weak or costly.
 

Agriculture, agribusiness and agritech

 

Many of the countries remain agrarian or rely on agriculture or livestock. Upgrading agriculture using technologies for irrigation, mobile-enabled supplychains, and value-added food processing, helps improve food security, export earnings, and improved livelihoods. 

Renewable energy and energy infrastructure

 

As a result of frequent energy shortfalls and high energy demand, there is an increasing focus on hydro, solar, wind, and other clean energy solution. These often attract support from governments or private investors.

Country-specific sectors

Mauritius

Mauritius is moving away from its dependence on sugar and sugarcane. Global pressures, competitiveness, and a drive for diversification have propelled policymakers to promote ICT, services, manufacturing, marine economy and tourism.

Tourism and hospitality

The tourism sector has rebounded strongly. Tourism-related spending is increasing.

ICT, digital, fintech, business process outsourcing (BPO)

The ICT sector is growing. Fintech and digital services are gaining ground and helping Mauritius to move from being a traditional agriculture/sugar economy to a more service and knowledge-based model.

Financial services and offshore finance and wealth management

Financial and insurance services are a pillar of the economy, leveraging Mauritius’s favourable regulatory and investment environment, as well as its international financial links.

Diversified manufacturing and non-sugar agriculture and food processing

The sugar industry is in long-term decline. Other agricultural products such as tea, food crops and livestock, are gaining ground.

Marine economy, blue-economy and renewable energy

Given its island status and exclusive economic zone (EEZ), marine economy (fisheries, aquaculture, and marine resources), together with interest in sustainable and green tourism and potentially renewables, present long-term opportunities.

Somalia

Despite political and infrastructure challenges, the youth population, diaspora links, low-cost mobile and internet data, and increasing connectiuvity make ICT and digital finance highly viable industries. Agriculture and fisheries remain natural strengths that could benefit from modernisation and better access to markets.

ICT, digital economy, telecoms, and mobile money

The ICT/digital secor is one of the fastest-growing industries. Mobile communications, broadband connectivity, and mobile-money and payment services are expanding rapidly.

Agriculture, livestock, agribusiness, and value-chain agriculture

With Somalia’s traditional strengths in livestock, and small-scale agriculture, there is scope for agribusiness, potentially leveraging digital tools such as mobile and data to improve productivity and value chains. It is widely held that ICT adoption among small-scale agribusiness enterprises improves operations.

Fisheries, marine economy, coastal, and maritime trade

Somalia has a long coastline with access to the Indian Ocean, giving the country potential in fishery, seafood exports, and coastal and maritime trade. However, infrastructure and investment are needed.

Diaspora-driven services, and financial inclusion

Mobile banking, remittances from Somali diaspora abroad, and financial-services innovations in microfinance and fintech are enabling business and consumption for many people.

Ethiopia

Ethiopia combines a large population, rising urbanisation, and a government drive to liberalise telecoms and finance, and to modernise the economy. Energy investments make power-intensive sectors such as manufacturing more feasible.

ICT, digital economy, fintech and telecoms

The government’s ‘Digital Ethioia 2025’ strategy aims to develop ICT infrastructure, digital finance. E-commerce, and to make Ethiopia a regional ICT hub.

Financial services, capital markets, and investment banking

The first domestic investment banking licences were recently issued, and a securities exchange is in train. This opens new avenues for banking, insurance, investment, and asset management.

Energy

Especially hydropower and renewables. Large energy generation infrastructure is being developed, including significant hydro projects which improve electrification, reliability, and provide energy for industrialization and export. Energy expansions are seen as a facilitator of industrial growth.

Industrial and manufacturing sector

light manufacturing, agro-processing, and export-oriented manufacturing. As infrastructure improves, manufacturing and processing of foods and textiles are likely to grow, especially with an improved energy supply and investment climate.

Kenya

Kenya benefits from strong infrastructure including internet connectivity, fibre-optic, and data centres, together with a young, tech-savvy population, favourable government policy for a digital economy, and regional trade opportunity as a hub. Agriculture remains an important sector, with growing demand for higher value products. Broad growth is being witnessed across ICT, transport, financial services, and manufacturing.

ICT, digital economy, fintech and tech start-ups

Kenya is often referred to as ‘Silicon Savannah’. ICT contributes significantly to GDP, and the digital economy, including mobile money, fintech, cloud, data centres, and BPO is expanding rapidly.

Agriculture and agribusiness

Modernised agriculture, export agriculture, and agritech. Agriculture remains a core economic pillar. However, agribusiness is moving to more valueaddition (food processing, horticulture, and floriculture), use of modern farming methods, and increased exports.

Manufacturing, especially agro-based, light manufacturing, and export-oriented manufacturing

Manufacturing contributes a generous share of GDP. Government policies such as special economic zones, and industrial parks, exist to raise share and competitiveness.

Transportation and logistics, storage, and trade services

With growing trade and domestic demand, transport, logistics, and storage services are increasing. Kenya’s role as a regional transport hub or gateway supports this.

Tourism and hospitality, and services export

Tourism remains important, and combined with services exports in areas such as IT, BPO, financial, and logistics, comprises a major growth driver.

Emerging climate technologies, clean energy, the green economy, and agritech

As power supply improves, and renewable penetration increases, there is growing opportunity for climate-smart agriculture, clean energy, and related innovations.

Djibouti, Eritrea, Sudan

Djibouti

Renewable energy and clean energy.

The Ghoubet Wind Power Station in the Arta region of Djibouti was recently commissioned, marking the country’s first grid-ready renewable power station. This implies a more general drive towards renewables and energy infrastructure.

Logistics, ports, maritime and trade services

Its strategic location on the Red Sea and Gulf of Aden enables Djibouti to serve as a port and trade hub. Expansion of logistics, shipping, and re-export services is likely, although little quantitative data is currently available.

Eritrea

Mining and natural-resources exploitation, and infrastructure

Data is scarce, but mining has often been viewed as a key opportunity in Eritrea. However, political and investment risks remain high. Mining partnerships to exploit potash, gold, and zinc are feasible, though often contested.

Sudan

Agriculture and agribusiness, energy, minerals, and rebuilding and reconstruction. Given Sudan’s large agricultural base, fertile lands in many regions, and post-conflict opportunities, it is feasible that agriculture, agro-processing, and infrastructure rebuilding could emerge as significant opportunities. However, recent data is complicated by political instability and sanctions, making forecasting imprecise.